Skiping the 10% deposit due to time constraints

M

mivons

Guest
Hi, I am the buyer. I have done a survey and 1 more viewing after the initial viewing and am happy to go ahead.

I will sign the contracts on Monday, closing date will be the 19th-Vendor will be moving out that day. Usually 10% of the purchase price less booking deposit will be due on my signature.

As I am getting a 100% mortgage with ICS it is ICS procedure to draw down/hand out the 10% deposit via a shortterm loan that I will get from BoI and will be paid back via my solicitor once he gets the full mortgage cheque from ICS.

I have a whole bunch of new paperwork for that loan, some of the documents need to be vouched for by my solicitor. However my solicitor advised (and I do agree with him) that there is no need to hand over 10% next week when contract will close 19th of May-Friday next week. As the 100% are needed then anyway.

Vendor/Estate agent is fine with this.

I just wonder whether there is any disadvantages for me when not putting down the 10%. I feel ok as solicitor advised me to do so and it does save me all the paperwork with BoI. Also I read somewhere else in the forum that 10% basically just paid to prevent me from pulling out..??

Anybody any thoughts?

Thanks in advance!
 
As long as the vendor's solicitor doesn't have an issue (and if the vendor doesn't he/she can instruct the solicitor) there's no problem. Putting down 10% is traditional but not mandatory - last time I bought I paid the princely sum of £1000 as a deposit!

Sarah

www.rea.ie
 
I only paid €1,000 deposit either. As my house is near completion, the vendors didn't look for the 10%.
 
I did this ..signing of contrats and closing happened with a week of eachother, and vendor was happy for me not to pay the 10% deposit.
If the vendor is happy enough for you to this this, then i would say why bring on the extra hassle of having to get a loan for your deposit until sale is closed? Buying a house is stressful enough, avoid getting the loan if you can
 
we havnt done this either only paid a booking deposit and its a new house, have now signed contracts but waiting on completion. builder was happy to wait for full amount on completion

Better for us too as it kinda puts the pressure on him to complete the house, to get any money
 
The vendor will be able to retain the booking deposit which should serve as a disincentive for you to pull out
 
Was in exactly the same position as you and cringed when I saw the paperwork for the BOI loan for the short term...PLUS when I spoke with the BOI people they said the loan term had to be at least 1 year...Sounded like a nightmare...So I just go the vendor to agree that I didnt need to pay the 10% and provided my mortgage offer document as proof that I was genuine.
 
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